Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Consolidated income (loss) from continuing operations before income taxes by location

The “Income before income tax expense” line item in the consolidated statements of operations consisted of:

(Dollars in thousands)	2020		2019		2018
Domestic	$	(4,371)	$	(18,711)	$	14,381
International	72,905		73,837		96,208
Total	$	68,534	$	55,126	$	110,589

Income tax expense (benefit) by location

The “Income tax expense” line item in the consolidated statements of operations consisted of:

(Dollars in thousands)	Current		Deferred		Total
2020
Domestic	$	5,340	$	(11,012)	$	(5,672)
International	26,610		(2,394)		24,216
Total	$	31,950	$	(13,406)	$	18,544
2019
Domestic	$	3,372	$	(16,827)	$	(13,455)
International	21,984		(722)		21,262
Total	$	25,356	$	(17,549)	$	7,807
2018
Domestic	$	(341)	$	(3,007)	$	(3,348)
International	26,604		(318)		26,286
Total	$	26,263	$	(3,325)	$	22,938

Deferred tax assets and liabilities

Deferred tax assets and liabilities as of December 31, 2020 and 2019, were comprised of the following:

(Dollars in thousands)	2020		2019
Deferred tax assets
Accrued employee benefits and compensation	$	6,199	$	5,730
Tax loss and credit carryforwards	17,644		17,761
Reserves and accruals	6,581		5,996
Operating leases	665		904
Capitalized research and development	14,167		11,343
Other	1,824		2,210
Total deferred tax assets	47,080		43,944
Less deferred tax asset valuation allowance	(9,250)		(14,625)
Total deferred tax assets, net of valuation allowance	37,830		29,319
Deferred tax liabilities
Depreciation and amortization	10,282		15,368
Postretirement benefit obligations	2,001		1,719
Unremitted earnings	2,426		1,624
Operating leases	714		908
Other	2,115		1,803
Total deferred tax liabilities	17,538		21,422
Net deferred tax asset (liability)	$	20,292	$	7,897

Effective income tax rate reconciliation

Income tax expense differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes. The reasons for this difference were as follows:

(Dollars in thousands)	2020		2019		2018
Tax expense at Federal statutory income tax rate	$	14,392	$	11,576	$	23,224
Impact of foreign operations	1,193		107		826
Foreign source income, net of tax credits	1,050		(2,248)		(197)
State tax, net of federal	(313)		(690)		121
Unrecognized tax benefits	5,800		543		(869)
U.S. Tax Reform	—		—		209
Equity compensation excess tax deductions	(791)		(2,902)		(2,238)
General business credits	(931)		(656)		(2,172)
Distribution related foreign taxes	2,332		1,240		1,916
Executive compensation limitation	900		589		801
Valuation allowance change (excluding U.S. Tax Reform)	(5,375)		(2,527)		602
Disproportionate tax effect of pension settlement charges	—		2,510		—
Other	287		265		715
Income tax expense (benefit)	$	18,544	$	7,807	$	22,938

Reconciliation of unrecognized tax benefits

Unrecognized tax benefits, excluding potential interest and penalties, for the years ended December 31, 2020 and December 31, 2019, were as follows:

(Dollars in thousands)	2020		2019
Beginning balance as of January 1	$	10,217	$	9,801
Gross increases - current period tax positions	5,417		3,139
Gross increases - tax positions in prior periods	46		—
Gross decreases - tax positions in prior periods	—		—
Foreign currency exchange	8		—
Lapse of statute of limitations	—		(2,723)
Ending balance as of December 31	$	15,688	$	10,217